Author Question: In preparing the first two closing entries, to which of the following columns of the work sheet does ... (Read 50 times)

Diane · **on:** Jul 6, 2018

In preparing the first two closing entries, to which of the following columns of the work sheet does one refer?
a. Balance Sheet columns
b. Adjusted Trial Balance columns
c. Income Statement columns
d. Trial Balance columns
e. Adjustments columns

Question 2

Which of the following methods is used in combination with net asset value method in the absence of valid market comps?

A) capitalization of earnings method
B) guideline transaction method
C) dividend payout method
D) earnings payout method

sarah_brady415 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

c

Answer to Question 2

A
Explanation: A) In practice, absent valid market comps, forensic accountants most commonly use the NAV method (which establishes a floor) in combination with the COE method.